According to a report in Digitimes, "mini" versions of flagship smartphones from Samsung, LG, HTC and Sony are selling very poorly compared with their bigger cousins. Sales of devices like the Samsung Galaxy S4 mini, LG G3 Beat, HTC One mini and Sony Xperia Z1 Compact have “fallen short of expectations. Sources from Digitimes commented that the primary reason for the disappointing sales figures are performance-to-price ratios that are out of line with the market.

The mini versions of flagships are typically smaller and cheaper than their more premium cousins, and do not have the same quality of internal components, instead typically including downgraded APs, cameras, and GPUs. The exception to this is the Sony Xperia Z1 Compact, which did not downgrade the internals, but the product does hold a much larger price tag than other minis. The result is a phone that looks smaller but similar, is branded similarly, but is not as capable of the flagship. If the sales of the phones are disappointing, the reliance on prestige or brand recognition is clearly not enough.

Moreover, in a world without significant mid- to low-range competitors, the strategy might have worked. Today, though, big brands are forced to contend with rising brands such as Xiaomi, Meizu, Huawei and ZTE, which offer comparable performance without the large price tag.

Expect the mini strategy to change, either to offer a more capable product or lower price (generally between US$400-US$500 before carrier subsidies) for future phones.In either case, the big brands could expect significant pressure on profit margins.